For a company to grow, or not perish, revenue inflow must never stop. The difference between a freight forwarder who's merely surviving and the market leader is their revenue generation is a low-effort, high output process. Forwarders who wish to master revenue growth must take into account all aspects that influence revenue growth.
Factors that
contribute to maximizing freight revenue include:
·
satiating customer's shipping
requirement
·
providing customers the best
experience with timely communication
· being cost-effective to the customer and the forwarder
So, if you want to drive freight revenue, your customer must provide great and timely service and you should be able to create larger profit margins.
Traditionally, cutting costs has been a popular strategy to increase revenue. Short-term gains with cost cuts may marginally increase your profit margin but it won't sustain for long. The changed customer buying behavior and dynamic freight market conditions make it tough to rely accurately on cutting costs for revenue generation.
To achieve constant medium & long-term revenue growth, freight companies develop and thoroughly follow up-to-date intelligent policies that have stemmed from data insights and their rich industry experience. In this guide, we share a few ways you can use technology to ensure stable revenue.
1. Fixing the
processes to avoid revenue leakages
Fixed freight costs can significantly influence your overall expenses. While fixed and statutory costs are out of reach but incidental costs like demurrage and detention can be avoided by setting up processes for positive and negative milestone alerts.
2. Get help from
technology
You generate
maximum revenue when your regulatory compliances are error-free and the
shipments are not delayed. Reliability of manual methods of operations usually
creates confusion in communication. Invest in technological tools like freight management software to boost your team's efficiency and always
establish clear communication.
3. Better collaboration for a shorter revenue cycle
Your marketing efforts must result in high-quality leads for the sales teams to tap into for closures. Closely working sales and marketing teams can achieve up to 38% higher sales closing rates delivering faster revenue realization.
4. Pricing
Bundle
If you are equipped to provide services like e-Invoices, e-VGM, Form 13, GSTR submission, etc., use opportunities to upsell your customers. Bundling these into your pricing strategies can be a good revenue generator.
5. Best customer
service for a premium
For long-term relations with your customers, a hassle-free experience requiring their minimum intervention is paramount. Quick booking, timely invoices and accurate documentation put you in a position to charge a decent premium for the quality you offer, helping you win bigger revenues.
6. Make data
your guide
KPIs are a way of tracking your progress towards the goals you set. Freight software makes it simpler to understand historic and current operations and presents the way forward to tweak your strategies for keeping the revenue flowing.
7. Find New Ways
to Reach Customers
It is not enough to use the traditional medium to gather leads. On average, customers are only spending 5% of their time with a sales representative before making a purchase. With digitalization, today's customer reads and knows your services before you make the pitch. Your presence in omni-channels allows expanding your reach to newer markets and capturing leads.
The freight world has rapidly grown in the last few years and it will only continue. Technology helps to view incoming tides of disruption and yet prepare well to continue generating stable revenue. By analyzing what your shippers want and making your service offerings competition-worthy, constant revenue growth can never be a challenge.
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